Business to Business_sukrati Pathak i.t.(08)

8/4/2019 Business to Business_sukrati Pathak i.t.(08)

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BUSINESS TO BUSINESSCOMMUNICATION

SUBMITTED BY-SUKRATI PATHAK

I.T. (08)


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CONTENTS INTRODUCTION

ADVANTAGES

INVENTORY MANAGEMENT

SUPPLY CHAIN MANAGEMENT

EDI

EFT

SOME POWERFUL TERMS IN B2B WORLD

B2B ATTRIBUTES

B2B EFFICIENCY

DRAWBACKS

FUTURE

CONCLUSION


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INTRODUCTION

Business-to-business (B2B) describes

commerce transactions between businesses,

such as between a manufacturer and a

wholesaler, or between a wholesaler and a

retailer.

The U.S. Commerce Department reports that

B2B ecommerce accounts for about 80percent to 90 percent of total e-commerce.


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Business- to- business commerce includes a

broad range of intercompany transactions ,

including wholesale trade as well as

company purchases of services, resources,

technology, manufactured parts and

components, and capital equipment.

For Example- TradeKey.com


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Company IT Adoption


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B-to-B Online Trade Forecast


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ADVATAGES OF B2B

Expose sellers in one marketplace to all

potential buyers.

Create a hub for development projects,market feedback, and customer

collaboration.

Reduce time to market.

Provide expansive catalogs of products and

services.


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Increase manufacturing efficiency, and

reduce overhead of inventories.

Streamline purchasing operations.

Reduce cycle times, improve transaction

flows, and manage parts inventories.


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Online Trade Forecast: Top Five Industries


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INVENTORY MANAGEMENT

Inventory management is primarily about

specifying the size and placement of stocked

goods.

The primary objective to determine/control

stock levels within the physical distribution

& to minimize stock holding and handling

costs.


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The need of inventory managemet

1. Time - The time lags present in the supply

chain, from supplier to user at every stage,

requires that you maintain certain amounts

of inventory to use in this "lead time.

2. Uncertainty - Inventories are maintained

as buffers to meet uncertainties in demand,

supply and movements of goods.


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Contd..

3. Economies of scale - Ideal condition of

"one unit at a time at a place where a user

needs it, when he needs it" principle tends

to incur lots of costs in terms of logistics.

So bulk buying, movement and storing

brings in economies of scale, thus

inventory.


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SUPPLY CHAIN MANAGEMENT

B2B marketplace is an integral part of anysupply chain system.

A supply chain system is being defined as

movement of product or services fromsupplier/manufacturer to other manufacturer/supplier .

A typical supply chain system components

are businesses/organizations, people,information, activities, technology andresources.


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Contd...

1) Extraction of raw materials.

2) Production e.g. component construction,

assembly and merging.

3) Storage and movement to remote locations.

4) Distribution to retailers and customers .


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Supply Chain Structure

Information Flow

Raw Materials

RETAILERFACTORY OTHER ORG WHOLSALERSUPPLIER

Finished Goods


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ELECTRONIC DATA INTERCHANGE

Electronic Data Interchange (EDI) is an

inter-company, application-to-application

communication of data in standard format

for business transactions without human

intervention.

EDI is very useful in supply chain.


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EDI documents generally contain the same

information that would normally be found in a

paper document used for the same

organizational function.

For example an EDI 940 ship-from-warehouse

order is used by a manufacturer to tell a

warehouse to ship product to a retailer.


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Request

Transcript

StudentInformationSystem

PrintTranscript

U.S. MailReceiveTranscript

Re-keyData

RecipientsStudentInformation

System

EDI

EDI FLOW


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ELECTRONIC FUND TRANSFER

Electronic funds transfer or EFT refers to

the computer-based systems used to perform

financial transactions electronically.

An EFT is the electronic exchange or

transfer of money from one account to

another, either within the same financial

institution or across multiple institutions.


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KINDS OF EFT

1. ATM

(Asynchr

onous

Transmission Mode)

2. CREDIT

CARD


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3. DEBIT CARD

4. CASH CARD


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PROBLEMS WITH EFT

SECURITY: The main problems with

electronic funds transfer is security.

Inconveniences To Consumers:

Activity related to terrorist funding.

Laundering money and tax evasion by somecompanies.


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SOME POWERFULTERMS IN

B2B

OUTSOURCING

CONSULTANTS

AUCTION NETMARKET PLACE


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OUTSOURCING

Outsourcing orsub-servicing refers to the

process of contractingto a third-party.

two organizations may enter a contractual

agreement involving an exchange of

services andpayments.

For Example-ImpactB2B Consultants (IBC)

is an outsourcing and consulting company.


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REASONS OF OUTSOURCING

1) Focus on Core Business

2) Improve quality

3) Operational expertise4) Access to talent

5) Tax Benefit

6) Scalability7) Risk management

8) Catalyst for change


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CONSULTANTS

A consultant is a professional who provides

professional or expert advice in business field.

For Example- DH Communication is an

consulting company.


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AUCTION

A market mechanism by which a seller

places an offer to sell a product and buyers

make bids sequentially and competitively

until a final price is reached.

Auctions can be done:

I. online

II. off-line

III. at public sites

IV. at private sites (by invitation)


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The Auction Process


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NETMARKET PLACE

Net Markets are online intermediaries

where many buyers and many sellers can

congregate to trade.

Net Markets essentially match buyers and

sellers using a variety of market

mechanisms including auctions.


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NET MARKET MODE


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B2Bs ATTRIBUTES Huge market opportunity

Financially light business model

Scalable Acquisition cost effect

Sticky products

Multiple revenue stream


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How B2B Companies Make

Money?

Sales of products

Service and maintenance fee

Transaction fee and listing fee Advertising


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B2B EFFICIENCIES

Administration costs Search costs

New markets

Maverick purchasing (buying occurs outside thenormal channel)

Joint purchasing

System integration (with the legacy system)

Collaboration (Outsourcing product design), jointchannel of distribution

Middlemen (the new service particularly for smallbusiness)


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DRAWBACKS OF B2B MARKETPLACE

1) Trust Breach

2) Business Reviewing is Difficult3) Addition to Competition

4) Software and communications standards

5) Security


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The Future is Brilliant

B2B e-commerce strategies create significant

future benefits.

A number of positive forces fueling future growth

of B2B marketplaces and electronic exchanges. Despite of the drawbacks in a b2b market place ,

the advantages have enough weight at present to

make these marketplaces the perfect meeting

grounds for buyers and sellers in future.

So,B2B has a bright future with

involvement of internet .


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CONCLUSION

If we call these B2B marketplaces as bridge between buyers/sellers, exporters/importers,manufacturers/suppliers then it will be widelyacceptable.

Actually online business opportunities and business communications have made businessprocesses easy and entertaining where one shouldnot worry about several business formalities andexpenditures.

On the other hand we can say online e-marketplaces as Time & Cost Saving Business

Medium.


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REFERENCES

www.google.com

www.wikipedia.com

www.TradeKey.com


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Documents

Business to Business_sukrati Pathak i.t.(08)